How does an exporter claim back VAT in terms of the new agreement with Swaziland?

Q: Regarding
Notice 270 published by SARS relating to the mutual agreement between South
Africa and Swaziland, my question is as follows:

• Is this agreement already in effect?

• Our clients zero rate vat on exports if they themselves
deliver the goods to Swaziland or pay for the transport of the goods by a courier
company. Do they now have to charge 14% VAT as a result of this agreement
between the two governments?

• Where an indirect export takes place, where does the
customer claim back the VAT (at the border post or from the Swaziland revenue
authority)?

A: Effective date of the agreement

The Notice that you refer to (number 270) specifically
states that, in terms of paragraph 1 of Article 8 of the Agreement, the date of
entry into force is 27 January 2015. The
Mutual Assistance agreement does not provide for the refund or the levying of
the tax. It does however refer to the
appointment of Claims and Refund Manager.

Standard rate

We are not sure why you say that "we now have to charge 14%
VAT”. If the goods exported are removed
from the RSA by the recipient (or the recipient’s agent) to an export country
(Swaziland) and the vendor didn’t elect to levy tax at the zero rate, the
recipient can claim the tax paid back from the refund administrator. Section A
of Part 2 of the Regulations (number 316) issued in Government Gazette No.
37580, 2 May 2014, deals with this.

The refund of tax is dealt with in Part One of the
Regulations and the claim will be made at the border post and not from the
Swaziland Revenue authority. We submit
that the VAT refund administrator at the border is in fact the Claims and
Refund Manager.

Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.

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